What are the usual payment terms?

The commercial lease should clearly specify the terms under which the rent and other sums due by the tenant are to be paid to the landlord.

The lease may specify, in particular:

• the amount of the basic rent;
• the frequency of payments;
• the date on which each payment becomes due;
• if the rent is payable in advance;
• the accepted payment method;
• the payment terms for additional charges;
• the mechanisms for adjusting or regulating certain charges;
• the consequences of a delay or failure to pay, subject to applicable rules.

The Civil Code of Québec stipulates that the tenant is obligated to pay the agreed-upon rent. In a commercial lease, it is therefore particularly important to clearly define the frequency of payments and their due dates.

The lease may also provide that certain sums, including the tenant's share of the building's operating expenses, will be paid periodically based on an estimate and then adjusted when actual expenses are known.

Clearly defined payment terms allow the parties to know the amounts due, their due date and how they should be paid.